What Leverage Do You Use?
A high leverage is one of the best things of the modern retail Forex trading and it allows making the thousands of dollars on some cent moves in EUR/USD currency pair, even if you have only $10,000 in your trading account. But on the other hand, that high leverage is the reason of the extremely high losses of the inexperienced Forex traders. The margin leverage is a multiplier that plays for you when you win and plays against you when you lose. With a big enough trading account it’s advised not to use the leverage at all, but the vast majority of Forex traders requires a leverage to make some money and they often seek the broker with a highest leverage possible. Personally, I prefer usual 1:100 leverage, which gives a lot of… you know, “leverage”, and makes the risk/reward calculations quite easy. And how about you?
Loading ...If you want to share your thoughts on using leverage in Forex trading, please, feel free to reply using the form below.
Tags: Forex poll, margin
September 14th, 2009 at 8:56 pm
I wouldn’t recommend traders use ANY leverage for the first six months of trading Forex. Even if they’re only on a micro account – it’s much better to perfect and then feel supremely confident with a big leverage than have a couple of losses wipe you out.
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Andrei Reply:
September 14th, 2009 at 9:26 pm
In my opinion, it’s good to trade on leverage during your first 6 months of Forex trading, but only on a demo account or a very small real account (which you aren’t afraid of losing). Trading for 6 months without a leverage and then jumping into a leveraged trading is a suicide.
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